OREANDA-NEWS. ACCO Brands Corporation (NYSE: ACCO), one of the world's largest designers, marketers and manufacturers of branded business, academic and consumer products, today reported its first quarter results for the period ended March 31, 2016.

"I am very pleased with our overall performance in the first quarter, and especially our constant currency sales growth," said Boris Elisman, President and Chief Executive Officer, ACCO Brands. "With the expected completion of the Pelikan Artline acquisition and strong initial back-to-school placements, I'm optimistic that profitable sales growth will continue despite the challenging macro and industry environments."

First Quarter Results

Net sales decreased 4% to $278.1 million from $290.0 million in the prior-year quarter. Sales increased 1% on a constant currency basis, primarily due to price increases.  Operating income increased to $6.5 million from $2.6 million in the prior-year quarter and adjusted operating income increased to $7.1 million from $2.1 million in the prior year.  Net income was $4.8 million, or $0.04 per share, and included a tax benefit of $7.4 million.  This compared to a net loss of $5.8 million, or $(0.05) per share, in the prior-year quarter.  Adjusted net loss improved to $0.9 million, or $(0.01) per share, from a net loss of $4.0 million, or $(0.04) per share, in the prior-year quarter.  The improvement was primarily driven by constant currency sales growth and improved gross margin.  Foreign currency translation negatively impacted the current quarter operating income and net income by $0.6 million.

Business Segment Highlights

ACCO Brands North America - Sales decreased 1% to $165.7 million from $166.7 million in the prior-year quarter.  Sales increased 1% on a constant currency basis driven by growth with e-tail and mass merchant customers.  Operating income increased to $10.3 million from $5.6 million in the prior-year quarter.  Adjusted operating income increased to $10.3 million from $5.1 million in the prior-year quarter primarily due to cost savings and productivity improvements.

ACCO Brands International - Sales decreased 10% to $85.3 million from $94.6 million in the prior-year quarter.  Sales increased 2% on a constant currency basis primarily due to price increases.  Operating income increased to $3.8 million from $3.3 million in the prior-year quarter despite negative foreign currency impact of $0.4 million.

Computer Products - Sales decreased 6% to $27.1 million from $28.7 million in the prior-year quarter.  On a constant currency basis, sales declined 4% due to lower sales of tablet accessory products.  Operating income decreased to $1.7 million from $2.0 million in the prior-year quarter.

Business Outlook

The company is increasing its 2016 sales and earnings outlook. The company now expects 2016 sales to increase low single digits and adjusted earnings per share of $0.78-$0.82. This is inclusive of  5% sales contribution and $0.04 earnings per share contribution related to the near-term closing of the acquisition of the remaining interest in joint-venture partner Pelikan Artline Pty Limited, and $0.02 negative impact from foreign currency translation. The company continues to expect full-year free cash flow of approximately $135 million.

About ACCO Brands Corporation

ACCO Brands Corporation is one of the world's largest designers, marketers and manufacturers of branded business, academic and consumer products.  Our widely recognized brands include AT-A-GLANCE®, Day-Timer®, Five Star®, GBC®, Hilroy®, Kensington®, Marbig, Mead®, NOBO, Quartet®, Rexel, Swingline®, Tilibra®, Wilson Jones® and many others.  Our products are sold in more than 100 countries around the world.